I’ve posted Entry #321 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Valuation-Informed Indexing Combines the Best Elements of Fundamental Analysis and Technical Analysis.
Juicy Excerpt: Shiller is not a technical analyst but he has incorporated one very valuable element of technical analysis into a framework dominated by fundamental analysis considerations and he thereby has developed something new, a balanced model that I believe in time will bring the long ongoing conflict between fundamental analysts and technical analysts to an end by allowing each of the warring camps to come to a better appreciation of the merits of the other fellow’s perspective. Stock returns really are predictable. But only in a limited sort of way. The fundamental analysts have been too complacent in their belief that the things they know are all there is to know and the technical analysts have reached too far too quickly and discredited their genuine contributions by doing so.